For many employers, this is the time of year marked by open enrollment for health insurance. This is your chance to change your coverage, or choose a new plan (if it’s available). As you navigate open enrollment, here are a few things to think about:
Could a High Deductible Plan Work for You?
One of the ways that many people save money on health insurance premiums is to get a high deductible plan. This type of health care plan requires you to pay more out of pocket, but it can mean a significantly lower premium. I’ve run the numbers in my own situation, and I know that paying more out of pocket is still a better deal for me than paying a higher premium. You can run the numbers in your own case to see whether or not switching it up might work for you.
If a high deductible plan does work for you, you might also want to consider a Health Savings Account, if you qualify. It can be another tax deduction for you, and provide you with a way to save up for the higher out of pocket costs.
Are You Paying for Extra Coverage?
Check your coverages. I knew a woman who had been paying for maternity insurance for years — even though she had had a hysterectomy. Pay attention to the coverage you are paying for, and make it a point to drop coverage you know you don’t need. You could save money if you stop paying for coverage you don’t need.
Do You Need More Coverage?
In some cases, you might need more coverage. If you find that you have a situation in which you need more coverage, or if you are unhappy with the benefits you have, you can upgrade to a different plan, if it’s available. You do need to be aware of the possibility of an increased cost if you increase your coverage, or look for a plan with more benefits. This might also apply if you try to find a plan that widens your available health care providers.
Do Your Providers Accept the New Plan?
I was dismayed recently to find that my husband’s new plan dropped some pharmacies from its coverage, including my chosen pharmacy. We had to change pharmacies in order to continue receiving coverage. This can be a problem with other health care providers as well. Before you decide what to do with your health plan, make sure you double-check providers. In some cases, you may not have much choice, but in other cases, you need to decide what it’s worth to you to keep the same health care providers.
Plan for Costs
Health care costs regularly go up. There is no way to stop this. As a result, you need to pay attention, and prepare ahead of time for the increase in costs. Consider ways to cut other expenses, or to earn a little more money. When you understand that there are always going to be increased costs, it will help you prepare for the coming year and the smaller paycheck.
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